Consumer protection and financial literacy can contribute to improved efficiency, transparency, competition, and access in retail financial markets by reducing information asymmetries and power imbalances between providers and users of financial services. Financial consumer protection has gained significance in policy debates, especially since the onset of the financial crisis in 2008. This paper presents the results of a survey on consumer protection regulations in 142 countries. The findings indicate that although consumer protection legislation is in place in the majority of countries, these do not necessarily address the issues specific to financial services. There is some evidence that enforcement powers and monitoring capacity are limited in many countries, obstructing the effective implementation of the existing regulations. Furthermore, independent third party dispute resolution mechanisms are not widespread. The paper also compiles comprehensive information on laws and regulations relevant for consumer protection and discusses a number of challenges related to empirical analyses of financial consumer protection to enable cross-country comparison.

Consumer Participation in Infrastructure Regulation draws on results of a survey questionnaire conducted among 45 infrastructure regulators in the East Asia and Pacific (EAP) region. It finds that EAP regulators have successfully begun to involve consumers in the regulatory process: consumer representation is a well-established practice in the region; and regulators draw on standard mechanisms to inform consumers, resolve consumer complaints, and solicit consumer input. However, regulators must take further actions to firmly move up the "ladder of consumer engagement," from merely providing information to actively consulting with consumers. In particular, consumer participation would benefit from more open disclosure policies, more effective strategies to reach out to the poor, and, tighter regulatory intervention to hold service providers accountable for resolving consumer complaints.

As financial markets develop and deepen, one of the key issues for the fair, open and efficient operation of the markets is the protection of consumers rights in financial services. Be they bank depositors or borrowers or investors in insurance policies, securities or investment or pension funds, financial consumers need the ability to accurately understand the terms and conditions of their contracts and take action if the terms of contracts have been violated. The Note is the second report in a pilot program to analyze consumer protection in financialservices.The objectives of the Note are three-fold, to: (1) present a set of draft good practices for assessing consumer protection in financial services; (2) conduct a review of the existing rules and practices in Slovakia compared to the draft practices; and (3) provide recommendations on ways to improve consumer protection in financial services in Slovakia. The Technical Note wasprepared at the request of the Slovak Ministry of Finance, with the valuable support of the National Bank of Slovakia and other government agencies...

This Technical Note has been prepared by the World Bank at the request of the Ministry of Finance of the Czech Republic and is the first in a pilot series of financial consumer protection assessments focus on consumer protection in several parts of the financial sector including banking, consumer finance, insurance, private pensions and collective investment funds. The assessments attempt to identify key components of strong consumer protection in financial services and stimulate debate on what reforms may be needed.

As financial markets develop and deepen, one of the key issues for the fair, open and efficient operation of the markets is the protection of consumers rights in financial services. Be they bank depositors or borrowers or investors in insurance policies, securities or investment or pension funds, financial consumers need the ability to accurately understand the terms and conditions of their contracts and take action if the terms of contracts have been violated. The Note is the second report in a pilot program to analyze consumer protection in financialservices.The objectives of the Note are three-fold, to: (1) present a set of draft good practices for assessing consumer protection in financial services; (2) conduct a review of the existing rules and practices in Slovakia compared to the draft practices; and (3) provide recommendations on ways to improve consumer protection in financial services in Slovakia. The Technical Note wasprepared at the request of the Slovak Ministry of Finance, with the valuable support of the National Bank of Slovakia and other government agencies...

The objectives of the diagnostic review of consumer protection and financial literacy for Armenia are: (i) to assess the existing financial consumer protection framework, by reviewing laws, regulations and practices in Armenia compared to international good practices; and (ii) to provide recommendations on ways to improve consumer protection and financial literacy in Armenia. The review provides a detailed assessment of the institutional, legal and regulatory framework in four financial segments, namely banking, non-bank credit institutions, securities, and insurance. Many key steps have already been taken in financial consumer protection, especially at the regulatory and institutional levels. Regarding the institutional framework, adequate resources need to be allocated to the consumer protection team and modern supervisory tools should be made available. Consumer organizations should be strengthened and motivated to assist the Central Bank of Armenia (CBA) in market monitoring. In terms of consumer disclosure...

The objectives of the diagnostic review of consumer protection and financial literacy for Armenia are: (i) to assess the existing financial consumer protection framework, by reviewing laws, regulations and practices in Armenia compared to international good practices; and (ii) to provide recommendations on ways to improve consumer protection and financial literacy in Armenia. The review provides a detailed assessment of the institutional, legal and regulatory framework in four financial segments, namely banking, non-bank credit institutions, securities, and insurance. Many key steps have already been taken in financial consumer protection, especially at the regulatory and institutional levels. Regarding the institutional framework, adequate resources need to be allocated to the consumer protection team and modern supervisory tools should be made available. Consumer organizations should be strengthened and motivated to assist the Central Bank of Armenia (CBA) in market monitoring. In terms of consumer disclosure...

As financial markets develop and deepen, one of the key issues for a fair, open and efficient market is effective consumer protection and financial literacy. The European Union takes the approach that an effective regime of financial consumer protection should allow consumers to have access to: sufficient information to make informed decisions about their financial choices; cost-effective recourse mechanisms to redress violations of financial service contracts; and programs of consumer education and financial literacy that empower them to understand their financial rights and obligations. This review has found that the quality of consumer protection in financial services in Croatia has improved in recent years. In particular, the approval of the 2007 Consumer Protection Act incorporated many of the EU Directives related to financial consumer protection. In addition, the National Council on Consumer Protection was established in 2008 to advise the Government on its national strategy for consumer protection in the coming years. A nation-wide baseline survey of financial literacy would provide useful information in designing programs in financial education and consumer awareness. As pioneered in the United Kingdom...

As financial markets develop and deepen, one of the key issues for a fair, open and efficient market is effective consumer protection and financial literacy. The European Union takes the approach that an effective regime of financial consumer protection should allow consumers to have access to: sufficient information to make informed decisions about their financial choices; cost-effective recourse mechanisms to redress violations of financial service contracts; and programs of consumer education and financial literacy that empower them to understand their financial rights and obligations. This review has found that the quality of consumer protection in financial services in Croatia has improved in recent years. In particular, the approval of the 2007 Consumer Protection Act incorporated many of the EU Directives related to financial consumer protection. In addition, the National Council on Consumer Protection was established in 2008 to advise the Government on its national strategy for consumer protection in the coming years. A nation-wide baseline survey of financial literacy would provide useful information in designing programs in financial education and consumer awareness. As pioneered in the United Kingdom...

Financial consumer protection and financial education policies, in conjunction with the regulation of financial institutions and markets, need to ensure safe access to financial services and support financial stability and financial inclusion objectives. Consumer protection and financial literacy can contribute to improved efficiency, transparency, competition, and access to retail financial markets by reducing information asymmetries and power imbalances among providers and users of financial services. Rapid progress toward widespread financial inclusion must be appropriately complemented with checks and balances that ensure a responsible provision of financial services and products. A number of international efforts are in place to improve dialogue and identify best practices in financial consumer protection. To contribute to the international dialogue on financial consumer protection the World Bank in conjunction with Fin-CoNet, an international cooperation platform for supervisory agencies in the area of financial consumer protection...

Financial consumer protection and financial education policies, in conjunction with the regulation of financial institutions and markets, need to ensure safe access to financial services and support financial stability and financial inclusion objectives. Consumer protection and financial literacy can contribute to improved efficiency, transparency, competition, and access to retail financial markets by reducing information asymmetries and power imbalances among providers and users of financial services. Rapid progress toward widespread financial inclusion must be appropriately complemented with checks and balances that ensure a responsible provision of financial services and products. A number of international efforts are in place to improve dialogue and identify best practices in financial consumer protection. To contribute to the international dialogue on financial consumer protection the World Bank in conjunction with Fin-CoNet, an international cooperation platform for supervisory agencies in the area of financial consumer protection...

The Diagnostic Review for Consumer Protection and Financial Literacy (CPFL) provides a detailed assessment of the institutional, legal and regulatory framework for consumer protection in two segments of the financial sector: banking and microfinance. The review was undertaken in response to a request for technical assistance in the field of financial consumer protection made by the National Bank of the Kyrgyz Republic (NBKR) in November 2012.

The Diagnostic Review for Consumer Protection and Financial Literacy (CPFL) provides a detailed assessment of the institutional, legal and regulatory framework for consumer protection in two segments of the financial sector: banking and microfinance. The review was undertaken in response to a request for technical assistance in the field of financial consumer protection made by the National Bank of the Kyrgyz Republic (NBKR) in November 2012.

This technical note is based on a mission conducted from April 24 to May 9, 2014 to Kingston and other parts of Jamaica. The mission also conducted a short mystery shopping exercise with the assistance of a representative from the national consumer’s league. Valuable comments on the draft note were provided by the Bank of Jamaica and the Financial Services Commission. The technical note consists of findings, issues and recommendations, and four annexes: annex one, existing structure for prudential and consumer protection supervision; annex two, current and revised legislation affecting financial consumer protection; annex three, comparison to world bank good practices on financial consumer protection; and annex four, national program of consumer protection and financial literacy, implementation plan components. The key recommendations present targeted measures that can be immediately implemented and will have a positive (and measurable) impact on public confidence in formal financial institutions. The focus of the technical note is on deposit-taking institutions although some aspects of others parts of the financial sector have been included.

The working paper makes the results of the conference proceedings on ‘Consumer Loans and the Role of the Credit Bureaus in Europe’ available, which took place in May 2009 at the EUI in Florence. The topic of the conference should be located in the changing legal environment for credit bureaus. This is largely due to the fact that the European capital market is gradually taking shape. The recent Directive 2008/48 on consumer credit has for the first time recognised credit bureaus as necessary institutions to exchange information on the creditworthiness of consumers. In the aftermath of the adoption of the Consumer Credit Directive, the working environment for credit bureaus has changed. The overall idea of the convenors was to initiate a dialogue which could break up the still existing compartmentalisation in different networks. The conference brought together representatives from credit bureaus, consumer organisations, data protection agencies, national supervisory authorities, consumer protection agencies, consumer protection ministries and the European Commission. We hope that the publication will serve as good and solid start for a long-lasting dialogue between all the actors involved in consumer credit issues.; The conference on ‘Consumer Loans and the Role of the Credit Bureaus in Europe’...

The paper discusses the opportunities for an empirically grounded decision support system as an instrument for independent and scientifically based consumer policy consulting. To date, consumer policy is dominated by the information paradigm and the leitbild of the rational, sovereign and information-seeking consumer. Yet, both everyday practice and research in behavioural economics show that this view lacks empirical ground. In fact, there are different consumer types and different forms of rationalities at work. Effective consumer policy making should be based on the empirically revealed behaviour of consumers, not on an ideal model. Moreover, it is often not clear how much consumer policy measures actually contribute to the consumer interest, and whether there would be more effective and efficient policy instruments to strengthen the consumer position. The authors suggest introducing an empirically based "Check Consumer Policy and Consumer Participation" as a systematic decision and evaluation tool for policy makers. This check should be independent from the government and should be grounded on an empirical view of the consumer. Consumer policy tools should be tested with real consumers. The authors suggest an independent national "Expert Council for Consumer Policy" as an ideal candidate to supervise this work.

This paper is a pilot diagnostic review of consumer protection in financial services in the Russian Federation. The review examines financial services in Russia, but also emphasizes the need for a set of good practices, or benchmarks, for use in reviewing consumer protection in financial services in any jurisdiction. This work will prove helpful to the international community, and those in emerging markets. The review finds that most people in Russia do not consider themselves financially literate, and have little understanding of their rights as consumers. The review's objectives are to conduct a review of the existing rules and practices in Russia, compared to international good practices on consumer protection in financial services; provide recommendations on ways to improve consumer protection in financial services in Russia; and refine a set of good practices prepared by the World Bank for assessing consumer protection in financial services. As part of the conclusion, methods for better financial education for consumers...

This paper discusses how the importance of adequate consumer protection and financial literacy for the long-term stability of the financial sector, has been highlighted by the recent turmoil in financial markets worldwide. It presents a set of Good Practices for Consumer Protection and Financial Literacy, developed by the World Bank's Europe and Central Asia Region, using international experience as a guide. The Good Practices provide a practical tool for systematic analysis of laws, regulations and institutions involved in consumer protection and financial literacy, and allow detailed cross-country comparisons. The paper provides the four key concepts on which they are based: consumer disclosure should be simple, easy to understand and comparable; abusive business practices by financial service providers should be prohibited; consumers should have an easy, inexpensive and speedy method of resolving disputes with financial institutions; and financial education should be available to consumers so that they can understand financial services and products and make informed decisions.

The recent turmoil in financial markets worldwide has emphasized the need for adequate consumer protection and financial literacy for long-term stability of the financial sector. This Working Paper aims to summarize key lessons from reviews of consumer protection and financial literacy in nine middle-income countries of Europe and Central Asia (Azerbaijan, Bulgaria, Croatia, the Czech Republic, Latvia, Lithuania, Romania, the Russian Federation and Slovakia). All the country assessments used a systematic common approach, based on a set of Good Practices for Consumer Protection and Financial Literacy developed by the World Bank's Europe and Central Asia Region. The objective of the Working Paper is to contribute to the international dialog on strengthening financial consumer protection and financial literacy in emerging markets.A financial consumer protection regime should meet three objectives. First, consumers should receive accurate, simple, comparable information of a financial service or product, before and after buying it. Second...

The diagnostic review for consumer protection and financial literacy (CPFL) provides a detailed assessment of the institutional, legal, and regulatory framework for consumer protection in four segments of the financial. A World Bank (WB) mission visited Peru from March 18 to 27, 2013 to prepare the review. The objectives of the CPFL review were: (i) to assess the existing consumer protection and financial literacy framework by reviewing laws, regulations, and practices in Peru compared to international good practices; and (ii) to provide recommendations on ways to improve the level of financial consumer protection and financial literacy in Peru. It seeks to identify key measures in strengthening financial consumer protection, with the ultimate aim of increasing the availability and transparency of financial information, helping build consumers' trust in the financial sector, and expanding their capacity to wisely use financial services. The review addresses the following issues: (1) institutional arrangements...